To be honest, has renewing your car insurance felt like a bit of a gamble?
One year it’s one price, the next year it goes up, and you are scratching your head, thinking, “What changed?” If you have ever thought to yourself, “Who actually gets the cheapest car insurance in Ireland?”, you are far from alone.
The fact is, there’s no secret group nor a specific “ideal” driver. Insurers take a look at a range of factors and then decide how risky you are likely to be. If your profile appears less risky, chances are you’ll get a more favourable quote. The silver lining: Find out what their criteria are, and you can start working things in your favour then.
What Makes Someone Look Lower Risk?
Each insurer has its own way of working, but they’re pretty much all looking for the same thing:
How likely is this person to make a claim?
If the answer is ‘not very likely,’ the premium’s usually set to match that.
Here are some of the big things they consider.
1. Your Age and Your Experience
On average, drivers from their mid-twenties to early 70s are more likely to be offered better prices. It is not a strict rule, and everybody has their own views, but experience really matters.
When you have had your license for a long time and have a good driving record, that makes a strong impression on insurers.
2. Your Driving History
Your driving record is a key element of the puzzle. A strong No Claims Discount (NCD), built up over several years without a claim can have a significant impact on your premium. A licence free of penalty points demonstrates your dedication to following the law and maintaining road safety.
If something small occurs, it’s always worth reviewing your policy or giving your insurer a quick call before you choose to claim. This way, you understand how it might affect your discount down the line.
3. What You Do for a Living
Although your job may not seem to have much to do with your car, it does provide insurers with information about how frequently you drive, when you’re out and about and what are your usual travel routes.
Someone whose work mainly involves sitting at a desk and keeping regular hours is likely to spend less time on the road than someone whose job requires driving all day. Less time behind the wheel can mean less risk – and that could play a part in how much you pay.
4. The Car You Drive
Your choice of vehicle has a significant impact on your insurance costs.
Smaller, standard cars in lower insurance groups are typically less expensive to insure.
- Less expensive to fix.
- Less powerful, which can be associated with more balanced driving.
- Less appealing to thieves.
Therefore, before making a decision, it’s worthwhile to investigate how various car models may impact your premium if you’re considering switching vehicles.
5. Where You Live and Park
Important considerations include where you live and where you keep your car, particularly overnight.
Accident rates are considered lower and vehicle crime levels are lower in quieter towns and rural areas. Car theft is also more common in crowded city center areas, where traffic congestion can be unbearable. These factors increase the level of risk in the eyes of insurers.
Having a vehicle in a secure car park or on a private driveway is generally considered much safer than leaving the vehicle on the street.
Who Usually Ends Up Paying More?
Certain circumstances often lead to expensive premiums. They don’t mean you can’t get cover, but they may push the price up.
- Young drivers under 25 with limited experience are more often found in accident statistics.
- Drivers with recent claims where they were at fault, or with penalty points, especially for speeding or using a mobile phone.
- Owners of high-powered, luxury, or significantly modified vehicles. Such cars can be pricier to repair or replace, and they may attract thieves.
- Drivers who live in busy urban areas or large towns, especially those with heavy on-street parking.
If you’re in any of these categories, there’s no need to panic. There are still steps you can take to help control the costs.
What You Can Do To Help Reduce Your Costs
Even if you fall into a higher-risk category, you still have options. Here are some practical tips that can truly impact your situation.
- Look After Your No Claims Discount
Your no claims discount is one of the most significant long-term savings tools you have. Before you make a claim for a minor scrape or little bit of damage, check your policy or speak to your insurer. Ask how a claim would impact your discount. Once you understand that, you can decide whether it is worthwhile to claim or to pay for a small repair yourself.
- Use Named Drivers the Right Way
If you’re a young or recently qualified driver, sometimes adding a more experienced driver to your policy can reduce the cost.
The main thing to remember is that the main driver always has to be the person who uses the car most. If this isn’t declared correctly, you could face issues if you ever have to make a claim, and your cover could be at risk.
- Think About Your Excess
Your voluntary excess is the amount you choose to pay if you make a claim. Opting for a larger voluntary excess can reduce your premium. Just remember, you should only select a level that you would actually be able to afford should anything happen. There’s no point in choosing an excess that could leave you stranded in an emergency.
- Pay in One Go If You Can
If your finances permit, it’s often more cost-effective to make your premium payment as a one-off annual payment rather than on a monthly basis. Monthly instalment’s sometimes involve interest or additional charges, so it pays to look at the total of each option instead of just the monthly amount.
Our Final Word: A Little Control Goes a Long Way
At AA Ireland, we recognize that you can’t change all of the factors that insurers consider. You can’t change your age, and you can’t change your previous driving record.
What you can do is:
- Drive safely and maintain your No Claims Discount
- Choose your next car with your insurance in mind
- Be honest about who really drives the car
- Take a few minutes to compare quotes rather than just accepting the first price offered to you
The Irish car insurance market is competitive and you have more power than you think. When you know what affects your premium, it stops being a mystery and feels more in your control.
A little time put into it now can make a significant impact, not only this year but for years to come. And if you ever need a helping hand understanding your cover or looking at your options, we’re here.
